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Why Alto High-Speed Rail Is Exactly What Canada Needs Now

 As a person that has watched, for over 30 years, Canada's inability to modernize its passenger rail system, it gets monotonous hearing the same old arguments. Lately, I have heard some state, "Now is not the time" for high-speed rail. Yep, heard that one for thirty years! Unfortunately, not having modern high-speed rail has resulted in Canada having a passenger rail system that is in decline. 

For these people, a five-plus-hour train trip between Toronto and Montreal—plagued by regular delays—is somehow tolerable. The regression is remarkable when you consider that the same route took four hours in the 1970s.

ALTO High-Speed Rail

This recent skepticism about Canada's Alto high-speed rail project misses the forest for the trees. While caution about major infrastructure investments is prudent, dismissing this transformational project ignores compelling economic realities, misrepresents comparative priorities, and underestimates what modern nations require to remain competitive in the 21st century.

The Economic Case Is Stronger Than Critics Acknowledge

Critics claim the economic benefits must be "weighed against billions in long-term subsidies," but this framing fundamentally misunderstands infrastructure economics. Pre-project studies estimate Alto will generate a recurring annual GDP gain of approximately $24.5 billion—equivalent to 1.1% of Canada's national output. To put this in perspective, that's comparable to the entire contribution of Canada's agriculture, forestry, and fishing sectors combined.

This isn't speculative optimism. These projections come from comprehensive economic analyses examining rail-user benefits, reduced road congestion, improved safety, agglomeration effects leading to productivity growth, and lower emissions. The project is expected to support over 51,000 jobs during its ten-year construction phase alone, spanning engineering, construction, architecture, planning, and technology sectors.

Beyond direct employment, Alto will catalyze transit-oriented development, with forecasts indicating more than 60,000 residential units could be built around stations—directly addressing Canada's housing crisis while generating substantial municipal tax revenues. Time savings from reduced highway congestion are valued at approximately $570 million annually, and the project's environmental benefits are estimated at $7.2 billion.

The False Choice Between Urban and Intercity Transit

The suggestion that Canada must choose between urban transit and high-speed rail presents a false dichotomy. Canada is already investing significantly in urban transit through the Canada Public Transit Fund, which provides $3 billion annually starting in 2026—$30 billion over ten years. Since 2015, the federal government has committed over $30 billion to more than 2,000 public transit projects across the country.

Alto isn't competing with urban transit for funding—it's complementing it. The Toronto-Quebec City corridor is home to 43% of Canada's labor force and generates 41% of the nation's GDP. With Transport Canada projecting a 21% population increase by 2043—adding five million people to Quebec and Ontario alone—demand for all transportation modes will intensify dramatically. The question isn't whether to invest in Alto or urban transit; it's whether Canada will meet the transportation needs of nearly half its population as it continues to grow.

Moreover, the comparison of potential Alto ridership (10-24 million annual trips) with urban transit systems (1.6 billion trips in 2024) is misleading. These serve fundamentally different transportation needs. Alto will transform intercity business travel, regional economic integration, and tourism—functions urban transit cannot fulfill. The two systems are complementary, not competitive.

Canada's Readiness and the G7 Comparison

Critics argue we should be cautious about comparisons with other G7 nations that have high-speed rail, noting they also have "more built-out urban transit systems" and highway tolls. But this logic is backwards. France, Japan, Germany, and Italy didn't wait until every urban transit need was met before building high-speed rail—they pursued both simultaneously because both are essential for modern economies.

The reality is that Canada's most densely populated corridor—stretching from Toronto to Quebec City and home to over 15 million people—has been operating with infrastructure built for a different era. Via Rail's current on-time performance sits at just 65%, with freight trains having right-of-way over passenger service. This isn't a system that can be incrementally improved; it requires dedicated passenger rail infrastructure.

Alto partners with world-class operators who have decades of proven success. The Cadence consortium includes SNCF Voyageurs, which operates France's renowned TGV network, alongside Canadian expertise from AtkinsRéalis and institutional support from La Caisse. This isn't experimentation—it's leveraging established international best practices while building Canadian capacity.

Avoiding the Pitfalls While Seizing the Opportunity

Yes, recent light-rail projects in Canada and high-speed rail efforts in California and Britain have faced challenges. But learning from these experiences is precisely why Alto has structured a phased approach, beginning with the 200-kilometer Ottawa-Montreal segment—the shortest, flattest section of the corridor where construction can begin simultaneously in both provinces by 2029.

This measured strategy allows teams to develop expertise and demonstrate success before expanding to more complex segments. It's the opposite of California's approach, which critics rightly note began construction in the least populated Central Valley. Alto starts where demand is highest and success most achievable.

The federal government has committed $3.9 billion for the initial planning and development phase, with comprehensive Indigenous consultations, environmental assessments, and community engagement beginning in January 2026. This front-loaded investment in planning and de-risking is exactly what's needed to avoid the cost overruns and delays that have plagued other projects.

Nation-Building Requires Vision, Not Just Reaction

The article concludes by suggesting other priorities—family doctor shortages, Indigenous water access, affordable housing, and defense spending—are "as much nation-building projects" as high-speed rail. This is undoubtedly true. But it's not an either-or proposition, and infrastructure has unique economic multiplier effects that health and social spending do not.

Every dollar invested in public transit infrastructure generates $2.40 in economic activity plus an additional $1 in GDP from wages, taxes, and business spending. Alto will enhance productivity across multiple sectors, reduce carbon emissions in line with climate commitments, and position Canada competitively for the remainder of the 21st century.

Canada is the ninth-largest economy in the world. The suggestion that we cannot simultaneously address social needs and build transformational infrastructure sells short our national capacity. Japan built its bullet train network while reconstructing its post-war economy. France developed the TGV during economic challenges in the 1970s and 80s. China has constructed the world's largest high-speed rail network in just two decades while lifting hundreds of millions from poverty.

The Cost of Continued Delay: Three Decades of "Not Now"

Perhaps the most significant oversight in the skeptical analysis is the cost of inaction—and the recognition that this exact argument has been deployed for over 30 years to prevent high-speed rail from ever becoming reality.

In the 1990s, critics said: "Not now—we need to focus on deficit reduction." In the 2000s: "Not now—we need to invest in security post-9/11." In the 2010s: "Not now—we're recovering from the financial crisis." And now in the 2020s: "Not now—we have other priorities like healthcare and housing."

There will always be other priorities. There will always be competing needs. If we wait for a moment when Canada faces no other challenges, when every social need is met, and when the economic conditions are perfect, we will wait forever—which is precisely what we've done while every other G7 nation moved forward.

The pattern is clear: each generation of critics invents new reasons why "this isn't the right time," ensuring that time never comes. Meanwhile, France completed its TGV network, Japan expanded its bullet trains, and even countries like Spain, Morocco, and Turkey built world-class high-speed rail systems. Canada has debated while others have built.

Each year of delay means more congestion, more emissions, more lost productivity, and more missed economic opportunities in our most vital economic corridor. More importantly, each decade of delay makes the eventual project more expensive, more complex, and more urgent when we finally acknowledge it can no longer be postponed.

The Toronto-Quebec City corridor will grow by five million people by 2043 whether we build Alto or not. The question is whether we'll have the infrastructure to support that growth or whether we'll burden another generation with inadequate transportation systems built for the 20th century.

Alto represents exactly the kind of bold, forward-looking infrastructure investment that prosperous nations make. With proper oversight, phased implementation, and learning from international experience, this project can deliver transformational benefits for generations of Canadians. The real risk isn't moving forward with Alto—it's continuing to wait while our economic competitors pull further ahead.

Let's not miss this train.

Paul Langan,

Founder High-Speed Rail Canada


References

  1. Alto Train. "Economic Benefits." Alto High-Speed Rail Project. Accessed January 2026. https://www.altotrain.ca/en
  2. Infrastructure Canada. "Canada Public Transit Fund." Government of Canada, 2024. https://www.infrastructure.gc.ca
  3. Transport Canada. "Transportation in Canada 2024: Statistical Addendum." Government of Canada, 2024.
  4. Alto Train. "Project Overview: Toronto-Quebec City High-Speed Rail Corridor." December 2024.
  5. CPCS Transcom. "Economic Impact Assessment: High-Speed Rail in the Toronto-Quebec City Corridor." 2024.
  6. Government of Canada. "Budget 2024: Fairness for Every Generation - Investing in Public Transit." Department of Finance Canada, 2024.
  7. Statistics Canada. "Population Projections for Canada, Provinces and Territories: 2021 to 2068." Catalogue no. 91-520-X, 2022.
  8. Alto Train. "Cadence Consortium Selected as Development Partner." Press Release, December 2024.
  9. SNCF Voyageurs. "TGV: 40 Years of High-Speed Rail Excellence." 2024.
  10. Parliamentary Budget Officer. "Infrastructure Investments and Economic Growth in Canada." Office of the Parliamentary Budget Officer, 2023.
  11. Litman, Todd. "Evaluating Public Transit Benefits and Costs." Victoria Transport Policy Institute, 2024.
  12. International Union of Railways. "High-Speed Rail: Fast Track to Sustainable Mobility." UIC, 2023.
  13. Transport Canada. "Rail Safety in Canada: 2023 Annual Report." Government of Canada, 2024.
  14. Conference Board of Canada. "The Economic Impact of Infrastructure Investment." 2023.


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